In Hong Kong the Hang Seng Index slipped 0.49 per cent, or 106.67 points to close at 21,455.23.

The global forecast for the Asian markets is broadly positive, thanks to the increasing likelihood that the FOMC will not raise interest rates later today. But only about 46% of business and academic economists surveyed by The Wall Street Journal in the week to last Friday predicted the Feds first rate increase would come at the September 16-17 policy meeting.

There was little reaction to news that Beijing intends to overhaul its vast state-owned firms in a bid to give a boost to the worlds No. 2 economy, while an earlier rally in some riskier assets petered out.

Concerns about the Chinese economy mean stocks are down 6 percent so far this week, with the drop exacerbated by thin trading volumes as many investors opt to stay on the sidelines.

The move comes after leaders in 2013 said they wanted the market to play a greater role in the economy, easing government influence on key sectors such as transport, energy production and arms manufacturing. But traders are also likely to sell to unwind long positions ahead of an extended break in early October before the plenum.

Margin trading allows investors to use borrowed funds to trade stocks with only a small sum as deposit.

Sina.com, a widely read news portal in China, reported that a notice sent by brokerage GF Securities to a trust firm called Zhongrong global Trust Co. said Zhongrong would still be able to trade on its platform.

Traders are refraining from aggressive trading before then, he added.

Analyst Andy Rothman advised final week that slowing actual property development – whereas affecting demand for uncooked supplies, which has hit Chinas overseas suppliers – was to be anticipated as China had constructed a lot housing over the previous decade – and he stated that rising gross sales of second-hand houses have been offering a brand new progress level for the financial system.

Down 4.9% month-to date, the Nikkei have suffered most in the region.

SHANGHAI Chinese stocks dropped by nearly 4 percent on Tuesday, denting hopes that a slew of regulatory measures issued by Beijing over the past three months had brought some stability to the market.

Analysts had expected authorities to clear out such accounts by the end of the month.

The SCI finished brutally lower on Tuesday with damage across the board as more than 700 stocks fell by the 10 percent daily limit.

The dollar was weaker against most peers before this weeks Federal Reserve meeting.

The country is set to struggle to meet its target of 7% growth for 2015.

The State Council stated that strikes towards higher marketization of state enterprises over the subsequent 5 years would result in extra personal funding and reforms of their administration construction. On Tuesday, turnover in Shanghai slumped to a roughly seven-month low.